In coup, DreamWorks to release movies through Disney

In a major surprise and minor industry scandal, DreamWorks confirmed on Monday that it will now release its movies through Disney, not Universal, as had previously been announced.

The move followed the end of DreamWorks’ contract with Paramount and a long-expected deal for another studio to release the movies DreamWorks produces. Universal was expected to fill that slot because of its relationship with DreamWorks co-founder Steven Spielberg, who has made some of his most iconic movies at Universal and maintains an office there.  

Universal, apparently, thought the deal was done as well, but because of a cash shortfall at DreamWorks and stalled negotiations to fix it, DreamWorks entered secret discussions with Disney about the possibility of shifting the deal to them. After Hollywood types learned late last week of the possible new deal, which blindsided Universal, breathless reports followed all weekend.

With the deal between Disney and DreamWorks confirmed, Disney will invest $250 million and distribute about six DreamWorks productions a year, beginning in 2010.

Related links:
News: DreamWorks and Paramount have a messy break-up
News: Hollywood studios to help theaters pay for 3D technology
News: Ben Stiller in talks to replace Steven Spielberg for Chicago 7

Got a news tip for Paste? E-mail news@pastemagazine.com.